5th Mar 2014 10:00
LONDON (Alliance News) - Specialist retail property company Capital & Regional PLC Wednesday said it swung to profit in 2013, after the previous year's results were dented by a devaluation of the company's portfolio mainly in Germany.
The company, which owns Waterside shopping centre in Lincoln, posted pretax profit of GBP9.3 million for 2013, compared with a loss of GBP12.7 million a year earlier, even though revenue dipped to GBP17.6 million, from GBP22.0 million in 2012.
As a result of returning to profitability, the company resumed payment of a dividend after five years, paying an interim dividend of 0.24 pence per share and a second interim dividend of 0.40 pence per share, making a total dividend of 0.65 pence for 2013.
The return to profit is due in the part to a GBP12.0 million profit from joint ventures compared with a GBP12.8 million loss a year earlier, while revenue dipped to due lower rental income from external sources at GBP31.4 million from GBP35.4 million in 2012.
Capital said it saw a noticeable pick-up in investment market activity in the fourth quarter, with property valuations in The Mall Fund rising by 1%.
"This is a positive sign for our property values when combined with improving economic conditions and the resulting impact on consumer sentiment," it added.
The Mall Fund is a specialist UK community shopping centre brand, owning six properties with a total lettable space of over 3 million square feet and home to nearly 800 retail units.
In turn, the company's net asset value per share rose 5.9% to 54 pence from 51 pence, while its EPRA net asset value rose to 56 pence from 55 pence.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
Occupancy levels at Capital & Regional's UK shopping centres declined slightly to 96.3% from 97.5%, but this is higher than the 95.4% recorded in June.
The UK shopping centre portfolio is now worth GBP851 million, down from GBP1.01 billion, while the German portfolio is worth EUR404.0 million, down slightly from EUR408.4 million in 2012.
Overall, Capital said it signed 56 new lettings, adding revenue of GBP5.0 million, and 31 new lease renewals, adding GBP1.5 million in revenue.
Looking ahead the company said phase two of its GBP9 million redevelopment of its shopping centre in Lincoln is on schedule, with 65% of redevelopment space by value already let.
"We have benefited from an active programme of asset management during the year, which has enhanced our operating performance and valuations towards the end of 2013," Chief Executive Hugh Scott-Barrett said in a statement. "We expect this trend to continue in 2014 and therefore look forward to making further progress in our drive to grow the company and enhance value for investors."
The stock was trading at 51.10 pence Wednesday morning, up 1.15 pence or 2.2%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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